Launching a new product on Brand Expand can be exhilarating, but deciphering the true cost of running your campaign can feel like solving a cryptic puzzle. This guide peels back the layers of "True Cost" to ensure you understand exactly what you're doing on your next product launch.
The "True Cost" Isn't the Whole Story
The advertised "True Cost" can be found on the far right of the header in launch setup. It is important to note that while it covers Brand Expand fees and any credit overage, it excludes product costs. Why? Because, those costs are offset by the revenue generated from successful sales. Think of it this way – you invest in the launch to kickstart sales, and those sales, in turn, cover your product expenditure.
How to calculate the total cost of your launch
Step 1: Product cost
Calculated based on your ACOS/discount and removing any product listing coupons
Ex: A $10 product at 100% ACOS will be $10, but a $10 product at 80% ACOS will be $8.
Step 2: Launch size
Multiple the product cost calculated in step 1 by the total number of scheduled promotions.
Step 3: 5% processing fee
We charge a 5% fee on the total launch product cost for fees and taxes.
Step 4: Cost of credits needed for the launch
You can calculate this by dividing your subscription cost by the number of included credits, for example, the cost per credit for the Brand Expander plan is $4.95 ($495/100 credits).
Step 5: Credit overage fees, when applicable
Overage fees are charged on a per-credit basis when sellers run out of their monthly credits. This cost is listed in your Account and on our website for each plan tier.
Overage fees are included under "Est. Promotion Fees" when setting up a launch and are not included in the True Cost as they are only charged when all included credits are exhausted.
Step 6: Outside fees
Our system does not factor in the cost of producing your product, marketplace fees, and other additional expenses.